ViroPharma, Quest Diagnostics, Goldman Sachs Group, Royal Bank of Scotland Group and Deutsche Bank highlighted as Zacks Bull and Bear of the Day

Zacks

For Immediate Release

 Chicago, IL – October 23, 2013 – Zacks Equity Research highlights ViroPharma (VPHM-Free Report) as the Bull of the Day and Quest Diagnostics (DGX-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the Goldman Sachs Group, Inc. (GS-Free Report), Royal Bank of Scotland Group plc (RBS-Free Report) and Deutsche Bank AG (DB-Free Report).

Here is a synopsis of all five stocks:

Bull of the Day:

ViroPharma (VPHM-Free Report) is up about 60% this year and nearly half of that gain came in one day last month when rumors were swirling about potential buyout suitors. According to Bloomberg News, Sanofi and Shire have shown interest in acquiring ViroPharma.

Now that ViroPharma has earned a Zacks #1 Rank (Strong Buy), this pullback to $37 looks even more interesting than just a bull flag consolidation in the wake of the rumors.

We'll look at the analyst estimates and recent EPS beats that have made VPHM a #1 in a moment, but first, here's the compelling chart with that big green candle on September 13 worth 11.7 million shares, which clearly indicates institutional accumulation...

ViroPharma develops and commercializes drugs specifically targeting unmet medical needs with particular focus on orphan diseases, which the FDA defines as rare conditions affecting less than 200,000 people, or that affect more than 200,000 persons but are not expected to recover the costs of developing and marketing a treatment drug. In essence, the FDA grants special "Orphan Drug Designation" status to drugs and biologics targeting these diseases.

ViroPharma's key drugs include Cinryze for hereditary angioedema (HAE), Plenadren for the treatment of adrenal insufficiency (AI), Buccolam in Europe for the treatment of pediatric seizures, and Vancocin for the treatment of C. difficile- associated diarrhea (:CDAD).

ViroPharma’s growth story currently revolves around Cinryze, which is approved in the U.S. for routine prophylaxis against angioedema attacks in adolescent and adult patients with HAE.

Cinryze accounted for 76% of total sales in 2012. In the EU, Cinryze received approval for routine prevention, pre-procedure prevention and acute treatment of angioedema attacks in adults and adolescents in 2011.

Cinrzye has been granted marketing exclusivity by the U.S. Food and Drug Administration (:FDA) until 2015 under the Orphan Drug Act. 
 
 
Bear of the Day:
 
I last wrote about Quest Diagnostics (DGX-Free Report) as a "Bear of the Day" in February of this year. Since then, the stock has continued to occupy the cellar of the Zacks quantitative model, consistently holding a #4 (Sell) or #5 (Strong Sell) Rank.

And that should have been enough to keep investors away, unless they like trading a stock that has only treaded water between $55 and $63 and basically flat-lined for the year while the S&P is up over 20%.
This week, DGX dropped once again from a #4 to a #5 Rank.

Quest Diagnostics is the leading provider of diagnostic testing, information and services that patients and doctors need to make better healthcare decisions. The company offers the broadest access to diagnostic testing services through its national network of laboratories and patient service centers, and provides interpretive consultation through its extensive medical and scientific staff.

With a new high of $405 million in quarterly net income in their report last week, you would think that things were looking up for Quest. But the continued decline in the top line, along with an actual earnings miss, is what must have concerned analysts most.
 
Additional content:
 
Goldman to Buy RBS Money Market Funds
 
Goldman Sachs Asset Management (:GSAM), a division of Goldman Sachs Group, Inc. (GS-Free Report), announced its plans to acquire the Global Treasury Funds from RBS Asset Management (:RBSAM), an arm of The Royal Bank of Scotland Group plc (RBS-Free Report). The Global Treasury Funds comprise money market funds.

According to Goldman, the deal could nearly double its Sterling-denominated offering in the European market. GSAM has 33% share in Europe of its total money market funds worth $195 billion as of Sep 30, 2013.

RBS, in order to increase focus in its core operations, has decided to exit the money market fund arm, entrusting Goldman with client service. Until the transition is complete, RBS and GSAM will work together to ensure proper service to RBS’ money market fund clients. Further, there will be no changes in the management of accounts. Alongside, funds or investors will not bear any expenses during the transition period.

The deal is likely to close in first-quarter 2014. Since the Global Treasury Funds are based in Ireland, approval by the Central Bank of Ireland and the Irish Stock Exchange is required to close the deal.

In Sep 2013, GSAM announced its decision to acquire Deutsche Asset & Wealth Management (DeAWM), a part of Deutsche Bank AG (DB-Free Report), with total assets worth $21.6 billion (as of Jun 30, 2013). The deal is likely to close in first-quarter 2014. In May 15, 2012, GSAM had acquired Dwight Asset Management (Dwight) from Old Mutual Asset Management (:OMAM). Both the transactions will expand its defined contribution (:DC) franchise.

Goldman currently carries a Zacks Rank #3 (Hold).
 
Get today’s Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:
 
About the Bull and Bear of the Day
 
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
 
About the Analyst Blog
 
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
 
About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
 
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Click here to subscribe to this free newsletter today.
 
About Zacks
 
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
 
Get the full Report on VPHM - FREE
Get the full Report on DGX - FREE
Get the full Report on GS - FREE
Get the full Report on RBS - FREE
Get the full Report on DB - FREE
 
Follow us on Twitter:  http://twitter.com/zacksresearch
 
Join us on Facebook:  http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
 
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
 
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
 
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
 
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Read the analyst report on VPHM

Read the analyst report on DGX

Read the analyst report on GS

Read the analyst report on RBS

Read the analyst report on DB


Zacks Investment Research

Rates

View Comments (0)